Mixed review for Brown's higher-ed plan

The nonpartisan Legislative Analyst’s Office on Tuesday issued a mixed review of the governor’s budget plan for California’s public higher-education system.

In a 40-page report, the office said Gov. Jerry Brown had some good ideas in his proposal. But it also found that many specifics need to be reworked.

The office was critical of Brown’s plan to provide large funding increases to the University of California, California State University and community college systems that it said were vaguely connected to “undefined performance expectations.” The governor has asked the Legislature to approve a $1.4 billion boost, or 13 percent increase, in this so-called “unallocated” funding for the 2013-14 fiscal year.

Such an approach, the report said, “cedes substantial state responsibility ... and takes key higher-education decisions out of the Legislature’s control.”

The review from the office of analyst Mac Taylor came two days before the state Senate budget committee is set to hold hearings on higher-education funding.

Another key recommendation from the report involved tuition. The analyst’s office urged the Legislature to reject Brown’s proposed tuition freeze, saying it likely would lead to steep tuition increases during the next economic downturn.

Currently, the report said, tuition paid by California students covers only about 30 percent of UC and CSU costs and 6 percent of community college costs, after taking into account state and institutional financial aid.

The analyst’s office also asked lawmakers to set enrollment targets for the three college systems to make sure that improvements in student outcomes do not come at the expense of student access. It suggested that any new funding first be used to meet the state’s “highest existing priorities,” including debt service, employee pension costs and community colleges’ deferred expenses.

Brown has earmarked $10 million each for the UC and CSU systems and up to $16.9 million for community colleges to offer more online courses, but the analyst’s office said much of that could occur with existing resources.

The report does recommend adoption of the governor’s proposal to lock in retirement costs in the CSU system and his ideas of requiring students to complete a federal financial-aid application before they can receive fee waivers for community college and reviewing dependent students’ income when determining financial-aid eligibility.

Sen. Marty Block, D-San Diego, said the report mirrored some concerns he had about holding higher-education sectors accountable and setting clear standards, which he said was missing from the governor’s budget. Block said he would like to see targets established for improving student access to higher education and elevating overall student excellence.

Block, chairman of the Senate’s education subcommittee, said he was looking forward to hearing from various stakeholders Thursday.

He also said he appreciated the “constructive criticism” and “solid recommendations” included in the new report.

“There is finally (more state) funding, but perhaps it can be better used,” Block said.